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TMI Blog2022 (11) TMI 648X X X X Extracts X X X X X X X X Extracts X X X X ..... ion in the CoC meetings to represent the views of the financial creditors in class is provided very clearly and elaborately in the IBC and the CIRP Regulations. The Authorised Representative so selected to participates in the CoC meetings as well as in decision making in the CoC, he does so on behalf of all the home allottees/homebuyers and the view of individual homebuyer is therefore subsumed in the majority (of more than 50%) decision coming through that process when the financial creditors in class express views and voted in any matter. This view is then placed before the CoC by the Authorised Representative. The Authorised Representative s primary duty and responsibility is to present the views of the financial creditors in class in the CoC meetings. We note that there is no deficiency or irregularity pointed out by the Learned Counsel for Appellant in the selection of the Authorised Representative. The fifteen Appellants in the present appeal are homebuyers. The Respondent No. 1 has stated that out of these 15 appellants, the name of one homebuyer Mr. Sharad Bhatnagar does not appear in the record of CoC - it is clear that a miniscule number of homebuyers have come before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Successful Resolution Applicant) in its parawise reply dated 6.11.2020, where it has clearly admitted that Successful Resolution Applicant was under no obligation to provide exit plan for financial creditors who did not vote in favour of the Resolution plan. The Appellant has further stated that the Resolution Professional did not provide sufficient notice before convening the CoC meeting as 24 hours notice before the start of e-voting, which are mandatory under the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (in short CIRP Regulations ) and therefore the members of the CoC could not properly examine the revision/ modifications/amendments that were carried out in the proposed resolution plan at a very late stage. The Appellant has also claimed that the Resolution plan was approved by the CoC for four projects and not for three projects and the Adjudicating Authority has erred in presuming in its order in para 12 that the Resolution plan has been approved for three projects. 4. We heard the arguments advanced by the Learned Counsels for the Appellants and the Respondents and perused the record. 5. At the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rguments presented by the Learned Senior Counsel for Respondent No. 1 and Respondent No. 2 and Learned Counsel for Appellant:- INSOLVENCY AND BANKRUPTCY CODE, 2016: Section 25-A: Rights and duties of authorised representative of financial creditors. 25-A. (1) The authorised representative under sub-section (6) or sub-section (6A) of section 21 or sub-section (5) of section 24 shall have the right to participate and vote in meetings of the committee of creditors on behalf of the financial creditor he represents in accordance with the prior voting instructions of such creditors obtained through physical or electronic means. xx xx xx xx (3) The authorised representative shall not act against the interest of the financial creditor he represents and shall always act in accordance with their prior instructions: xx xx xx xx (3A) Notwithstanding anything to the contrary contained in sub-section (3), the authorised representative under sub-section (6A) of section 21 shall cast his vote on behalf of all the financial creditors he represents in accordance with the decision taken by a vote of more than fifty per cent. of the voting share of the financial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in any matter. This view is then placed before the CoC by the Authorised Representative. 11. Thus, the Authorised Representative s primary duty and responsibility is to present the views of the financial creditors in class in the CoC meetings. We note that there is no deficiency or irregularity pointed out by the Learned Counsel for Appellant in the selection of the Authorised Representative. The fifteen Appellants in the present appeal are homebuyers. The Respondent No. 1 has stated that out of these 15 appellants, the name of one homebuyer Mr. Sharad Bhatnagar does not appear in the record of CoC. Out of the rest 14 appellants, 8 homebuyers participated in the voting held by the Authorised Representative. Their votes are thus recorded in the voting whereas 6 have not voted at all. The views/votes of 8 voting homebuyers are therefore covered in the voting exercise, where we find that an overwhelming majority of 99.97% have voted to approve the resolution plan. Thus, it is clear that a miniscule number of homebuyers have come before us as applicants and out of this small number, six have not even cared to cast their vote, have to sail with the decision of the majority of home ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Code is that their authorised representative is required to vote on the resolution plan in accordance with the decision taken by a vote of more than 50% of the voting share of the homebuyers; and this 50% is counted with reference to the voting share of such homebuyers who choose to cast their vote for arriving at the particular decision. Once this process is carried out and the authorised representative has been handed down a particular decision by the requisite majority of voting share, he shall vote accordingly and his vote shall bind all the homebuyers, being of the single class he represents. 13. We adopt the judgment in CA (AT)(Ins) No. 283/2022 dated 12.10.2022 of Hon ble Chairperson Bench of NCLAT wherein the Resolution Plan relating to the same corporate debtor M/s. Earth Infrastructure Limited was under challenge. The Hon ble Bench noted as follows:- 11. To the similar effect is the Resolution Plan with regard to other two projects, the plan clearly mention that Resolution Applicant proposes to satisfy all the admitted claims in respect of the project by completing the pending construction activities and handing over possession to the allottees, in the m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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